 China Eratat Sports Fashion Limited is a company that primarily distributes sports footwear, designs and distributes sports attire established under the proprietary brand “Eratat”. The group's products are aimed for a wide range of activities catering to sports and casual lifestyle. In addition, the group corporate strategies' includes expanding their distribution base increasing retail locations in the PRC. As at March 31, 2009, the total number of retail locations for Eratat is registered at 1690.
The sports footwear includes running, basketball, tennis, cross-training, and casual footwear. In addition, it also produces sports footwear products under a third party brand.
As of May 22, 2009, the group had announced that the group's founder and executive chairman and chief executive officer Mr Lin Jiancheng had purchased 120,325,00 ordinary shares at the price of $0.125 for each share. This approximately represents about 29 per cent of the issue and paid-up capital of the Company through his wholly-owned company, Sunny Joy Limited. If taken together with his current direct shareholding of 1,200,000 shares, Mr Lin will then own approximately 29.3 per cent of the issued and paid up capital of the company, and subsequently makes him the single largest controlling shareholder.
In addition, executive director Mr Ye Sanzhi had also purchased 32,175,000 ordinary shares at the price of $0.125 for each share, representing 7.8 percent of the issue and paid up share capital of the company. The purchases were from the Heron Win Group, and transactions were on a wiling buyer and willing seller basis.
Moreover, the Hero Win Group would have also sold 60 million shares to institutional investors and sophisticated investors at the price of $0.125 for each, making up a portion of 14.5 percent of the issued and paid-up share capital of the company.
The company also announced that there would be no change in its board members, key management, or business direction in the near future. Moreover, as the company had no bank borrowing, the change in controlling shareholder will not result in any breach of loan covenants.
According to Mr Lin, “This is a demonstration of our confidence in the industry and China Eratat. Our share price is currently under-valued and not reflective of our fundamentals.” He added that the purchase of shares by institutional and sophisticated investors also showed confidence in China Eratat.
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| HISTORICAL PRICE DATA |
| Date |
Open |
High |
Low |
Close |
Volume |
| 19 Jun 2009 |
0.120 |
0.125 |
0.120 |
0.125 |
4,706,000 |
| 18 Jun 2009 |
0.125 |
0.125 |
0.120 |
0.120 |
2,885,000 |
| 17 Jun 2009 |
0.125 |
0.130 |
0.120 |
0.120 |
4,556,000 |
| 16 Jun 2009 |
0.130 |
0.130 |
0.120 |
0.125 |
3,607,000 |
| 15 Jun 2009 |
0.135 |
0.140 |
0.125 |
0.130 |
5,833,000 |
|
| FUNDAMENTALS |
EPS ($) a
0.06753 |
Rolling EPS ($) e
0.06753 |
NAV ($) b
0.2379 |
PE
1.851 |
Rolling PE f
1.851 |
Price / NAV b
0.525 |
Dividend ($) d
0.003382
|
52 Weeks High
0.270 |
Cash Value ($)g
0.0827 |
Dividend Yield (%) d
2.706 |
52 Weeks Low
0.055 |
Price / Cash Valueg
1.511 |
Issued & Paid-up Shares c
414,913,000 |
Par Value ($)
n.a. |
Market Cap (M)
51.864 |
Stock Categories
Retail / China |
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